Treasury Bill
A Treasury bill (T-bill) is a short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations of $100, $1,000, $5,000, $10,000, and $100,000. They are sold at a discount from their face value and mature at face value. T-bills are issued by the U.S. Department of the Treasury and are considered one of the safest investments available.
History of Treasury Bills
Treasury bills have been around since the early 1900s. They were first issued in 1929 as part of the U.S. government’s effort to finance the Great Depression. Since then, T-bills have become a popular investment for individuals and institutions alike. They are considered one of the safest investments available, as they are backed by the full faith and credit of the U.S. government.
T-bills are sold at a discount from their face value and mature at face value. This means that investors can purchase a T-bill at a lower price than its face value and receive the full face value when the T-bill matures. This makes T-bills an attractive investment for those looking for a safe and secure investment with a guaranteed return.
Comparison Table
| Investment | Maturity | Interest Rate | Risk Level |
|---|---|---|---|
| Treasury Bill | Less than 1 year | Fixed | Low |
| Treasury Note | 1-10 years | Fixed | Low |
| Treasury Bond | 10+ years | Fixed | Low |
Summary
Treasury bills are short-term debt obligations backed by the U.S. government with a maturity of less than one year. They are sold at a discount from their face value and mature at face value, making them an attractive investment for those looking for a safe and secure investment with a guaranteed return. For more information about Treasury bills, visit the U.S. Department of the Treasury website or consult a financial advisor.
See Also
- Treasury Note
- Treasury Bond
- Government Bond
- Municipal Bond
- Corporate Bond
- Certificate of Deposit
- Money Market Account
- Savings Account
- Mutual Fund
- Stock
